NEPTUNE Energy has underlined its faith in the exploration potential of the UK North Sea as it prepares to drill the key Isabella well.
The private-equity backed firm said the well will target one of the most-exciting prospects in the Central North Sea, which lies off Scotland.
Read more: North Sea potential underlined by financiers as Neptune expands
Highlighting a strong first half performance by its UK business, Neptune said it also planned to apply for more North Sea exploration acreage in the coming licensing round.
Neptune acquired a stake in Isabella last August from US giant Apache, along with an interest in the Seagull find east of Aberdeen.
The deal indicated Neptune believed there were good returns to be made from developing existing North Sea finds as well as from hunting for new ones.
Read more: North Sea upheaval set to continue as oil giant mulls sale of $2bn portfolio
In March it approved plans to develop Seagull.
The energy industry heavyweight who leads Neptune, Sam Laidlaw, yesterday described Seagull as a key project.
Neptune highlighted a strong performance by the giant Cygnus gas field in the Southern North Sea, which came onstream in 2016. Operated by Neptune, Cygnus accounts for around six per cent of the UK’s gas production.
A former chief executive of Centrica, Mr Laidlaw founded Neptune to capitalise on the opportunities he expected to be created following the oil price fall from 2014.
Read more: Big bet on North Sea paying off for private equity giants
He won backing for Neptune from investment heavyweights Carlyle Group and CVC.
Neptune bought the oil and gas business developed by French utility Engie for around £3.9 billion, in a deal agreed in 2017.
Its UK North Sea output averaged 16,700 barrels oil equivalent daily in the first half, against 20,600 boed last time. Production from some non-operated fields ceased in August last year.
Neptune, which also has assets in Asia and North Africa grew first half underlying earnings by 15% to $880 million (£720m).
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